Sunday, January 12, 2014

Study exposes how carriers can add value to mobiles



The latest study by Strand Consult has shown how carrier’s carrier could add value to the mobile market across the world, reports DigitalSENSE Business News.

According to the study which cited Mexico as an instance, says there are opportunities to achieve that but the necessary conditions for the model to work, and how the actors could maximize the benefits of the model, have to be followed to help organizations.

A carrier’s carrier is a business model in which an operator with a mobile network serves only wholesale customers, such as mobile operators, Internet Service Providers (ISPs), and 

Mobile virtual network operator (MVNOs).


“In markets where many carriers compete, the cost of acquiring customers is high.  When prices and margins are under pressure, it is necessary to think outside the box,” part of the study said.

Stressing that in order to understand Net Neutrality and Stakeholders’ arguments, there is need for consolidation of the mobile industry is a reality.

“The question is not whether the mobile market will experience consolidation but how and in which countries,” Strand Consult highlighted.

The operator, study said could build and run its network most cost-effectively has a comparative advantage in the marketplace.

“It may make sense for this operator to specialize just in network and let competitors focus on other areas of the business,” DigitalSENSE Business News reports.

Other potential carrier’s carriers include green-field players that win spectrum as part of the digital dividend, or even smaller operators that would like an alternative future than being part of a consolidation.

Chuks Egbuna/GEE
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Pix: Gbenga Adebayo, chairman of ALTON

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